Morocco and India convene to avoid double taxation

Morocco and India concluded on Friday in Rabat an accord whereby Rabat and New Delhi will avoid double taxation and prevent tax evasion.

The agreement was initialed by Moroccan Economy and Finance Minister Fathallah Oualalou and visiting Indian Finance Secretary of State Kmr Janardhanan.

The accord will pave the way for the promotion of trade exchanges and open new horizons for the Moroccan-Indian cooperation, Oualalou said.

The Moroccan minister voiced satisfaction over the creation of a joint venture between the Moroccan state-owned phosphates corporation (OCP) and the Indian Birla Group.

The $230 million dollar worth joint venture is destined to supply India with Moroccan phosphoric acid.

It will annually produce one million tons of sulfuric acid and 330,000 tons of phosphoric acid. The production unit will be built in Jorf Lasfar (220 km south of Rabat).

According to OCP statistics, India imports 50 percent of the phosphoric acid marketed worldwide and that is estimated at 3.4 Million tons. OCP is the largest phosphoric acid exporter in the world, meeting 50 percent of the world market's needs.

Morocco's acid exports to India vary between 800,000 and one million tons per year, representing half of India's imports.

According to 1996 statistics, India was Morocco's fourth-largest client accounting for 6.3 percent of Moroccan exports and its 28th-largest supplier, accounting for 0.6 percent of the Northern African country's imports. The bilateral trade balance presents a surplus in favor of Morocco.

Imports, which totaled 455 million dh in 1996, are made up mainly of engines, cotton fibers, spices and motorcycles, while the exports are dominated at 98 percent by phosphoric acid and phosphates.